EUR/USD Forex Signal - 6 August 2019

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EURUSD: Bullish break above 1.1200 area

Yesterday’s signals produced an excellent, profitable long trade following the bullish break of the hourly outside candlestick which based off the support level at 1.1117. It may be wise to take at least partial profits now or move the stop loss to breakeven or higher.

Today’s EUR/USD Signals

Risk 0.75%.

Trades must be taken between 8am and 5pm London time today only.

Short Trade Ideas

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1244, 1.1279, or 1.1317.

  • Put the stop loss 1 pip above the local swing high.

  • Adjust the stop loss to break even once the trade is 20 pips in profit.

  • Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.

Long Trade Ideas

  • Go long following a bullish price action reversal immediately upon the next touch of 1.1191 or 1.1117.

  • Put the stop loss 1 pip below the local swing low.

  • Adjust the stop loss to break even once the trade is 20 pips in profit.

  • Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.

The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.

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EUR/USD Analysis

I wrote yesterday that the new higher support at 1.1117 was a bullish sign. This level was likely to be the day’s pivotal point, so if it held up, I thought that we were likely to see another rise, possibly even as high as the resistance level at 1.1188.

If the price closed above 1.1150 at 9am or 10am London time, I was ready to take a bullish bias on this currency pair. Unfortunately, it didn’t quite close above that level at those times, but my call on the price rising higher after basing off 1.1117 was completely correct.

The Euro advanced strongly, benefiting from long-term buying at a long-term low last week plus strongly risk-off sentiment boosting the Euro as a safe haven currency. The advance from 1.1030 has been strong.

The area around 1.1200 was expected to be strong resistance, yet it is interesting how the price was able to get all the way to 1.1243, although of course the 1.1250 area is expected to be resistant too.

If the price continues to advance now and close the day above 1.1250 that would be an extremely bullish sign. A more likely scenario is a consolidation beneath 1.1243 today.EURUSDThere is nothing of high importance due today concerning either the EUR or the USD.

Adam is a Forex trader who has worked within financial markets for over 12 years, including 6 years with Merrill Lynch. He is certified in Fund Management and Investment Management by the U.K. Chartered Institute for Securities & Investment.
Learn more from Adam in his free lessons at FX Academy.